Latest stock market news from Wall Street - CNNMoney.com

Wednesday, October 10, 2012

US investors in no hurry to buy China stocks: Citigroup


10 October 2012

SINGAPORE - Investors in the United States are "in no hurry" to buy China's stocks on concern earnings will slump further as the economy slows and policymakers refrain from adding stimulus measures, according to Citigroup.

Only about 25 per cent of the investors that Citigroup officials met during a US trip may consider purchasing equities, "though with low levels of convictions", according to a report. There is concern the economy or earnings may get worse before they get better, the report said.

"The majority of investors seemingly are sidelined and are in no hurry to participate, even if it means missing an initial 10-per-cent run," said Mr Shen Minggao, a Hong Kong-based analyst at Citigroup, who met about 60 equity investors in the US recently.

Investors are concerned "Chinese equity is not as cheap as the numbers have suggested or there is no clear sign that the de-rating is near its end".

The Chinese government is seeking increased foreign investment in the nation's equities after the benchmark Shanghai Composite Index briefly dropped below the 2,000 level on Sept 26 to a three-year low. It climbed 2 per cent to 2,115.23 at the close yesterday. Bloomberg

No comments:

Post a Comment